Country cash items are credited to the account of the depositors at once, although their collection and ultimate payment may not take place for some time, owing to the fact that the instruments are drawn on banks situated outside of the immediate locality.

These instruments are handled by the transit department. It prepares the country cash items in much the same manner as the clearing-house department handles city cash exchanges - that is, by indorsing, sorting, and listing them. Transit, or country cash, items consist mainly of checks bearing a general indorsement which reads somewhat as follows: "Pay to the order of any Bank, Banker, or Trust Company, all prior indorsements guaranteed." This expression has the same force as a blank indorsement, for it enables any collecting bank to which the check is forwarded to present it to the drawee and receive payment. By this indorsement a bank is able to transfer claims with far greater speed than by a special indorsement which stipulates the name of every bank acting as collecting agent. The indorsement given above also includes the sending bank's "transit" number, which is composed of two parts, the first designating the local clearing house, the city or the state to which the bank belongs; and second, the clearing-house number of the bank itself. For example, the National City Bank of New York is numbered 1-8, and the Continental and Commercial National Bank of Chicago is designated as 2-3. All banks throughout the country are listed in a numerical system established by the American Bankers' Association, and the out-of-town items are then sorted according to the banks which are to act as collecting agents. These may be classified either on an alphabetic basis according to the name of the collecting bank or on a geographic plan, depending upon the section of the country in which the bank is located.

The final task of the transit department is to list or enter the details concerning the outgoing items on a letter of advice. This transit letter accompanies the outgoing checks and contains such information as the amount of the items inclosed, the name or transit number of the payer, and any special instructions to the collecting bank. Country cash items other than checks are collected in about the same manner. As collection, or noncash, items are not credited to the customer's account until actual payment has been made, this handling involves the additional task of holding them during the interval between their deposit and collection. This operation must be performed with accuracy, for failure on the part of the bank to present time instruments at their date of maturity may bring loss to the holders in the event of non-payment.

The procedure of recording and filing these items until their maturity is described as "timing." This operation is performed by recording on slips or "tickets" all the facts necessary for negotiations, such as names of all parties, amount, date, and place of payment, together with any special instructions. One ticket is usually attached to the instrument, which is then placed in a file, and the entire transaction is entered or posted in a record book called a "tickler." Both file and tickler are arranged in chronological order so that the items can readily be handled as they mature from day to day. A week before maturity it is customary for the bank to send to the maker of a note or the acceptor of a bill a notice of the approaching maturity of the obligation and of the necessity of meeting it with sufficient funds.

The preparation of these collection items in a small bank devolves upon the note teller. As a rule it is his duty to receive all time items from depositors and to prepare these instruments for collection. In the evolution of bank organization the note teller lost most of his collection duties and has retained only the operation of receiving time items across the window. In addition, his department has been given a variety of other tasks, so that it is regarded as the internal clearing house for handling all miscellaneous items which arise in the daily routine of the bank. The preparation of instruments for collection is performed by several departments which are known by various names, but they may be described simply as city and country collection departments. In brief, their duties consist of preparing and collecting noncash items. The work of preparation and collection is about the same as in the case of a cash item.